Rana Mamdouh _ Alexandria Mills and Bakeries Company recorded a net profit after tax of EGP 12.407 million during the first quarter of the 2026/2027 financial year, compared to EGP 15.489 million in the comparative period of last year, marking a 19.9% decrease.
Reasons for Profitability Decline
In its statement sent to the Egyptian Exchange (EGX) today, Alexandria Mills and Bakeries attributed the decline in its profits to a decrease in the quantity of wheat milled during the period by approximately 7.290 thousand tons of wheat compared to the same period of the previous year.
The company stated that during the current period, it bore increases in the cost prices of production inputs, including wages, fuel, electricity, water, spare parts, and packaging materials, compared to the corresponding period of the previous year and by significant increases exceeding the approved milling cost.
It pointed out a decline in credit interest by approximately 5.391 million pounds compared to the same period of the previous year, due to the decrease in the yield rate on current accounts and deposits, in addition to the implementation of the direct deduction system starting from the beginning of last August, which resulted in the payment of an amount of about 60 million pounds from the company's available liquidity to purchase wheat.
It also noted that the company shipped a quantity of 5.840 thousand tons of 87.5% flour to affiliated companies with an average equivalent to 6.674 thousand tons of wheat, representing a decrease of 300 tons of flour with an average equivalent to 349 tons of wheat compared to the corresponding period of the previous year.
It noted that byproduct sales during the period reached 3.313 million pounds. The period also included in-kind and cash benefits of about 940 thousand pounds. Furthermore, wages included the application of Law No. 75 of 2026 regarding the enactment of the periodic allowance, grant, and additional incentive, and the application of the minimum wage for employees starting from the beginning of last July.
According to the statement of Alexandria Mills and Bakeries, the provisions used during the period amounted to 3.020 million pounds as follows: 3.028 million pounds as a provision for claims and lawsuits. Provisions were reinforced, excluding depreciation, by about 6 million pounds as follows: 1 million pounds as a provision for disputed taxes, and 3 million pounds as a provision for lawsuits.
Gross Profit Rises 4.75% to EGP 24.018 Million
Gross profit rose by 4.75% to EGP 24.018 million during the period from July to September 2026, compared to EGP 22.929 million in the comparative period.
Revenues Rise 6% to EGP 106.810 Million
Revenues of Alexandria Mills and Bakeries increased by 6.06% to EGP 106.810 million during the same period, compared to EGP 100.707 million in the corresponding period last year.
Gross Profit-to-Revenue Ratio Records 22.49%
The gross profit-to-revenue ratio recorded 22.49% during the three months ending last September, compared to 22.77% in the comparative period.
